Brussels, 11/12/2014 (Agence Europe) - The Agriculture Council is expected on 15 December unanimously to authorise state aid by Cyprus in the form of a tax exemption for agricultural diesel (see EUROPE 11211 and 11195). After the latest meeting of the Special Committee on Agriculture (SCA) on Tuesday 9 December, it is a given that the Council will permit Cyprus to continue to provide state aid for six months (from 1 July 2014 to 31 December 2014).
Following discussions with the European Commission that allowed the reluctant countries to accept the payment of this aid, from 2015, agricultural diesel will be taxed at the minimum rate permitted by the general rules in this area, that is, 2.1 cents per litre. Three member states - Belgium, Denmark and the Netherlands - are expected to abstain. This will not, however, prevent the decision to authorise the Cypriot state aid from being unanimously adopted. (LC)